The management of people within a business Internal Organisation

How & why business organise themselves Internal organisation tells us how the business is structured for decision making and communication. Head teacher Pastoral leader Form tutor Deputy Head Head of department Subject teacher

Why Organise? What would happen if nobody organised anything at school?

Formal or Informal Formal organisation states what jobs people have, what responsibilities and how much power & authority. It states the channels of communication Head teacher Pastoral leader Form tutor Deputy Head Head of department Subject teacher Is this formal or informal?

Formal or Informal The informal structure is based on social groupings: http://www.youtube.com/watch?v=dp8LC5nAzcs http://www.youtube.com/watch?v=rNcZyO-Nb5E Informal groupings Common interest groups Semi-formal groups Friendship groups

Hierarchy Pyramid

Delegation If the head teacher wanted a new display-board, they would tell the deputy head who would tell the head of department, who would tell the subject teacher.

Delegation Requests or complaints Orders or Instructions Passing authority down to lower levels is called delegation Orders or Instructions Requests or complaints

Span of control The span of control refers to the number of people over whom a person has direct authority. There are two types: Narrow span of control Wide span of control Head of department Head teacher

Centralised or Decentralised

Centralised or Decentralised? In a centralised organisation, everything is controlled by one person. In a decentralised organisation, people are responsible for their own actions, and have increased responsibility.

Organisational Charts 1) The hierarchical pyramid 2) The family tree 3) The circular organisation

How do you structure? Division by function This is when a firm is divided up by the jobs people do. (Sales / Finance / HR / Production) Division by geography This is when the firm is divided up by geographical area. (Europe / America / Asia / Africa) Division by product This is when the firm is divided up by the type of product being made. (Ford  Fiesta / KA / Mondeo / Galaxy / Escort)

6 KEY POINTS Good organisation is essential to the smooth _____________ of the company Both __________ and informal structures will exist in the firm A ______________ pyramid is a structure which is narrow at the top and wide at the bottom A hierarchical pyramid has a clear chain of __________ and channels for ________ Firms can be organised centrally of __________ Drawing organisational _________ helps to understand organisation structures charts / running / hierarchical / communication / formal / command / de-centrally